What Does GBA Mean in Real Estate?
Understand Gross Building Area (GBA) in real estate. Learn what this key metric represents for property analysis and valuation.
The real estate industry uses various measurements to describe property size, and understanding these terms is important for buyers, sellers, and investors. One such measurement is Gross Building Area, commonly known as GBA. This metric provides a comprehensive understanding of a building’s overall footprint and is particularly relevant in commercial real estate transactions. Grasping the details of GBA is essential for accurate property valuation and effective decision-making in the dynamic real estate market.
Understanding Gross Building Area (GBA)
Gross Building Area (GBA) represents the total enclosed area of a building, encompassing the sum of all its floors. This measurement is taken from the exterior surfaces of the building’s outer walls. GBA typically includes all enclosed spaces within the structure, such as all floor levels, basements, and mezzanines.
GBA differs from terms like rentable area or usable area by focusing purely on the total physical footprint of the structure. For instance, while Gross Living Area (GLA) primarily measures finished, above-grade residential space, GBA includes all finished areas and common spaces like stairways and hallways. It also means that areas not typically heated or cooled, which may still be usable in commercial properties, are accounted for in GBA.
Calculating Gross Building Area
Calculating Gross Building Area involves measuring from the exterior surface of the building’s permanent outer walls. This method ensures that the entire physical volume of the building is accounted for. The process generally entails measuring the length and width of each floor, including the exterior walls, and then multiplying these measurements to determine the square footage of each level. The sum of these individual floor areas provides the total GBA.
Common inclusions in GBA calculations are structural elements, common areas such as hallways and lobbies, and mechanical rooms. Spaces like stairwells and elevator shafts are typically included on each floor through which they pass. Basements are generally part of the GBA calculation, especially if they are finished and have reasonable access. However, GBA calculations generally exclude exterior areas like open balconies, patios, fire escapes, and surface parking lots.
The Role of GBA in Real Estate
Gross Building Area serves as an important metric for various stakeholders in the real estate industry. Appraisers, investors, developers, and property managers utilize GBA for different purposes. For appraisers, GBA provides a standard measurement to evaluate property size and contributes to determining market value, particularly for multi-family units and commercial properties.
Investors and developers often use GBA in initial development planning and feasibility studies. It helps in assessing the overall size and potential of a building, which is crucial for estimating construction costs and potential revenue. Property managers also consider GBA for operational planning and understanding the total space under their purview. GBA can also influence property taxes and financing options, as larger buildings may incur higher taxes or qualify for different loan amounts.